Economy
Related: About this forumAs Payless wades through bankruptcy again, creditors say hedge fund may be to blame
Source: USA Today
Kevin McCoy and Nathan Bomey, USA TODAY Published 5:00 a.m. ET April 29, 2019 | Updated 2:01 p.m. ET April 29, 2019
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In February, just a year-and-a-half after its first Chapter 11 reorganization case, Payless landed back in bankruptcy court this time wiping a decades-old retailer off the map in the U.S. and Canada. The turn of events has destined an estimated 16,000 workers for unemployment and disappointed consumers who relied on the chain's 2,500 stores and website for affordable shoes, boots, and sandals.
The company intends to keep Payless' overseas operations running.
Some of the chain's lenders and creditors claim the collapse may stem in part from self-inflicted causes. They cite the role of Alden Global Capital, a prominent hedge fund that is Payless majority shareholder as well as a major lender.
Critics maintain Alden has invested in distressed companies and then in some cases installed unseasoned executives who cut costs and sold assets while failing to take steps needed for successful corporate turnarounds. Some Payless creditors and lenders also have raised questions about what they characterized as conflicts of interest between Alden and Payless.
After hearing Alden-focused court argumentslast Wednesday in St. Louis, Missouri, Chief Judge Kathy Surratt-States of the Eastern District of Missouri ordered anti-conflict-of-interest measures to ensure that Payless creditors and lenders receive equal treatment with the hedge fund. The provisions include the unusual appointment of a monitor to oversee the five-seat Payless board, three with Alden ties, including Heath Freeman, the hedge fund president.
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Read more: https://www.usatoday.com/story/money/2019/04/29/payless-shoesource-bankruptcy-creditors-lenders-question-alden-global-capital-hedge-fund/3340048002/
BigmanPigman
(51,590 posts)TreasonousBastard
(43,049 posts)it had the sort of stuff I needed at good prices and better quality than WalMart or Target-- the other two options.
But, it was a hassle shopping there. Displays were dreadful and the lighting was horrible. The place was in bad repair and just plain looked like shit. Very few people stocking or pricing, and most of the time you couldn't find anyone to help.
Then they decided to save money by not printing the weekly flyer.
Vendors started dumping them and the house brands were being sold off and cheapened. Kenmore and Craftsman suddenly meant little any more. Buying online died a horrible death.
This is simply because hedge fund guys do not understand retail. They only understand spreadsheets and graphs, which are the results of successful businesses, not the heart of them.